House prices: Expert discusses 'interesting' pricing differences
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House price growth has finally slowed after 11 consecutive months of rises. The Office for National Statistics (ONS) has recorded a slight drop in house price growth, which will be music to the ears of prospective buyers up and down the UK.
UK average house prices increased by 9.8 percent over the year to March 2022, down from 11.3 percent in February 2022.
House prices are still historically high, with the average home costing £278,000 now.
But the findings are a smidge of hope for those looking to purchase a property, who have been facing one of the toughest and most expensive markets in UK housing history.
Express.co.uk has the lowdown from a host of experts on whether the property market will finally fall in favour of the buyer.
What will happen to house prices?
Experts are divided on how the rest of 2022 will play out when it comes to property values.
While some believe prices will continue to rise, others think external factors like the cost of living crisis and rising interest rates will impact growth.
Nathan Emerson, CEO of Propertymark, which represents estate agents, told Express.co.uk that he believes the market will cool later on this year – but it’s highly unlikely we’ll see any price drops.
He said: “The year-on-year increase shows there is still plenty of momentum within the housing market, however, we are now seeing some signs of things starting to cool.
“But we keep coming back to the issue of low supply being the main driver of rising prices.
“Our member agents are telling us that it’s still an issue and that the number of people looking to buy remains far higher than the number of properties they have listed.
“This, coupled with incredibly low borrowing rates, is likely to maintain prices in the short to medium term.”
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Managing director of HBB Solutions Chris Hodgkinson said the rise in interest rates will be certain to slow the market down in the coming months and could spell problems for buyers too.
He said: “The property market remains awash with homebuyers keen to climb the property ladder and with stock levels remaining insufficient, this heightened demand is continuing to drive house prices upwards on an annual basis.
“However, with interest rates rising and inflation at a 40-year high, mutterings of a looming recession could soon reverse the market conditions seen in recent years and we’re already starting to see a slowdown on a month-to-month basis.
“Should this come to fruition, many sellers may find it a struggle to secure a buyer and for a price they are happy with.”
Some property experts believe that while certain types of properties lose momentum, others will continue on the upward trajectory.
Lee Martin, head of UK for Unlatch told Express.co.uk: “The new-build sector remains the beating heart of the UK property market and while the regular market is now starting to lose stamina, new-build house prices continue to climb at some quite astonishing levels both on a monthly and annual basis.”
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